First BanCorp. Announces 25% Dividend Increase and $350 Million Share Repurchase Program
During its third-quarter 2026 earnings call, First BanCorp. (FBP) announced significant capital return initiatives, including a 25% increase in its quarterly common dividend and a new $350 million share repurchase authorization. The bank maintains a strong solvency position with a CET1 ratio of 16.9%, allowing for these returns despite rising funding costs across the banking sector. To protect profit margins against deposit competition, the company is repricing its investment portfolio, expecting approximately $252 million in new investments at an average yield of 2.23% in the fourth quarter. Additionally, management has successfully pivoted toward commercial lending to offset declining consumer loan demand, resulting in a 3.3% annualized linked quarter increase in total loans.